Computation of Income Tax Payable of individual (resident and non-resident citizens) Gross Income P xxx Less: Allowable deductions XXX Net income Pxxx Less:Personal and Additional Exemption XXX Net taxable income Pxxx Multiply by tax rate XXX Income tax due Pxxx Income tax payable XXXIF TAXABLE INCOME TAX DUE IF TAXABLE INCOME TAX DUE IS IS Not over P10,000 5% Over P10,000 but not P500 +10% of the Over P140,000 but not P22,5000+25% of the over P30,000 excess P10,000 over P250,000 excess over P140.00 Over P30,000 but not P2,500+15% of the Over P250,000 but not P50,000 +30% of the over P70,000 excess over P30,00 over P500,00 excess over P250,000 Over P70,000 but not P8,500 +20% of the Over P500,000 P125,000 +32% of the over P140,000 excess of P70,000 excess over P500.000Notes (for guidance) : ADDITIONAL PERSONAL EXEMPTIONS: For each qualified dependent/child , an amount of P 25,000.00 additional personal exemption can be claimed but only up to 4 children of not more than 21 years of age. In the case of child who are physically or mentally incapacitated age will not matter. 1. The husband who is deemed the head of the family unless he explicitly waives his right in favor of his wife. 2. The spouse who has custody of the child or children in case legally separated spouses. Provided, that the total amount of additional exemptions that may be claimed by both shall not exceed the maximum additional exemptions allowed by the Tax Code. 3. The individuals considered as head of the family supporting a qualified dependent. The maximum amount of P2,400 premium payment on health and/or hospitalization insurance can be claimed if: a. Family gross income yearly should not be more than P250,000. b. For married individuals, the spouse claiming the additional exemptions for the qualified dependent shall be entitled to this deduction. 8:03 PMSAMPLE ONLY ILLUSTRATIVE PROBLEM Joshua is a resident citizen. Married, with two(2) qualified dependent children earning purely compensation income amounting to P565.000. His wife is an employee earning P198,000.00. the taxes withheld by the employer of the husband totaled in P114,500 while the employer of the wife withheld a total of P24,500. Computation of tax for Joshua and wife as follows Joshue Wife Gross income P565,000 P198,000 Total income 565,000 198,000 Deductions Personal exemption (50.000) (50,000) Additional exemption(2 children) (50.000) Total deductions (100,000) (50,000) Net taxable income P465,000 P148,000 Tax due On first P250,000 P50,000 On remainder of P215,000 at 30% 64,500 On first P140,000 22,500 On remainder of P8,000 at 25% 2,000 Total tax P114,500 P24,500 Less:tax withheld by employer (114,500) (24,500) Net tax due 0 0TASK TO DO: Ralph and Shiny. both Filipinos. got married titre years ago. Ralph has his own furniture business which generated revenues worth P720300 and incurred expenses worth P240300 this year. Shing is an employee a leading phan'naceulical company and is earning a P425.000 a year. They have three minor children and one adopted child is a minor. How much Is the basic personal exemption oi Ralph? How much is the additional personal exemption of Ralph? How much is the income taxable of Ralph? How much Is the income tax payable of Ralph? How much is the basic personal exemption oi Shiny? How much is the additional personal exemption of Siting? How much is the income taxable at Shing? . How much Is the income tax payable at Siting? \"ail-"Plow